Yesterday Apple (AAPL) gapped higher on the open and rose to an all-time intraday high of $674.88 a share, before reversing hard to end the day nearly $20 lower on relatively large volume. The S&P 500 (^GSPC) did much the same thing, finishing with a drop after finding sellers above the 1,419 closing high made in early April.
Nothing gets traders more nervous than failed breakouts and S&P 500 has rallied nearly 9% since the beginning of June. After yesterday's action "Book profits and leave early for Labor Day" is the prevailing game plan.
The Fed, Europe, China and Japan's trade deficit are going to suddenly seem to "matter" more than they did three weeks ago. They don't. Nothing much has changed all summer except the trading mood. The mood has shifted. It's time to consider trimming trading gains.